Different sub-segments of equities available to trade in NSE

When placing orders we might have come across with different symbols such as EQ, OL etc. In this article lets us understand the meanings of some symbols and how the segments they are linked to:

ROLLING SETTLEMENT:

In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day.

At NSE, trades in rolling settlement are settled on a T+2 basis .i.e. on second working day.

LIMITED PHYSICAL MARKET:

The Limited Physical Market was introduced on June 7, 1999.

This was introduced to the directive of SEBI to provide an exit route for small investors holding physical shares in securities mandated for compulsory dematerialized settlement, the Exchange has provided a facility for such trading in physical shares not exceeding 500 shares.

This market segment is referred to as “Limited Physical Market” (small window).

Trading is conducted in the Odd Lot market (market type ‘O’) with book Type ‘OL’ and series ‘BT’.

Order quantities should not exceed 500 shares.

The base price and price bands applicable in the Limited Physical Market are same as those applicable for the corresponding Normal market on that day.

Trading hours are the same as that of the normal market and order entry during the pre-open and post-close sessions are not allowed.

Delivery Obligations arise out of each trade.

INSTITUTIONAL SEGMENT:

Trading in Institutional segment is available for institutional investors only. In order to ensure that the overall FII ceiling limits are not violated, trading members shall be allowed to enter sell orders in this market segment only for their FII clients.

Trading takes place under series type ‘IL’ under market type ‘N’.

Minimum tradable quantity is 1, and trading shall be on dematerialized mode only and on T+2 rolling settlement basis.

In the case of buy/sell orders, members shall be required to enter the custodial participant code at the time of order entry.

All transactions in IQ series shall be settled under settlement type ‘N’.

A cash market member may trade and settle the transactions done on behalf of QFI’s based on the client codes. The assessment and collection of STT on such trades (EQ and IQ segment) will have to be at the rate applicable to delivery based transactions.

TRADE FOR TRADE SEGMENT:

The scripts in Trade for Trade segment are made available for trading under BE or BT series.

The settlement of scripts available in this segment is done on a trade for trade basis and no netting off is allowed.

These criteria for shifting scripts to/from Trade to Trade segment are decided jointly by the exchange in consultation with SEBI and reviewed periodically.

BLOCK TRADING SESSION:

Trading will be conducted in the ODD Lot market (market type ‘o’ with Book Type ‘OL’ and series ‘BL’.

Block window sessions are available 35 minutes from the beginning of normal market trading hours i.e. the trading window shall normally remain open from 09:15 hours to 09:50 hours.

Orders should be of a minimum quantity of 5,00,000 shares or minimum value of Rs. 5 crores whichever is lower.